Question about my pricing

[bazooka]

I know this, that I have to pay taxes on it and I am.

I think she's talking about sales tax, not income tax. Sales tax is what you collect from your client for local rates and state rates and then send them a check either monthly, quarterly, or yearly.

 

[MLeeK]

I'm not an accountant or lawyer but since you are not a registered business and do not collect sales tax and declare your earnings as income then I think that would make your pictures "work for hire" In the case of work for hire, the client owns the images including copyright and you would have to ask her permission to use them in your portfolio. If this is the case you will lose in small claims court.

Keith, where are you when we you?!

I have to do my taxes for earned income since its less than 600 a year. She was my first client that payed me which I recieved $126 for last year. I am looking into the bsiness licenses more because its not like I have more than, if I'm lucky, two people a year. I just started actually selling them and this lady has been my first customer.
Just so I have a clear explanation, why would the copyrighted images need permission?

Not your income tax. SALES TAX! And they can nail you for every dime they THINK you made which is the average photographer's sales tax per however long THEY determine you have been in business.

You have to have a signed model release from the persons in the images or their legal parent or guardian if you want to post anything on the internet-ANYWHERE-or you want to show those images in a portfolio of any sort. In short, having them posted to facebook is illegal also.

The work for hire does not apply to a photographer, but could get sticky because there is not a contract and you could actually be considered work for hire if they claim to have hired you a certain way. Keith can explain that better than any of the rest of us if he's around. He's pretty versed in the legal aspects. You really need to consult an attorney regarding all of this. While we can tell you what we know, it's not going to help you in court or could just plain be wrong.

 

[Kra_Ash]

Not your income tax. SALES TAX! And they can nail you for every dime they THINK you made which is the average photographer's sales tax per however long THEY determine you have been in business.

You have to have a signed model release from the persons in the images or their legal parent or guardian if you want to post anything on the internet-ANYWHERE-or you want to show those images in a portfolio of any sort. In short, having them posted to facebook is illegal also.

The work for hire does not apply to a photographer, but could get sticky because there is not a contract and you could actually be considered work for hire if they claim to have hired you a certain way. Keith can explain that better than any of the rest of us if he's around. He's pretty versed in the legal aspects. You really need to consult an attorney regarding all of this. While we can tell you what we know, it's not going to help you in court or could just plain be wrong.

Okay thank you. I will have to talk to an attorney then. This is just crazy to think my first client is already suing me -_-

 

[memorishots]

I feel bad for you lol but it's really easy to get a tax ID and EMI. And if your client has not fully paid you ... You are still the owner of the picture unless you sell it to some one else . So technically she won't win in court if you use her picture for you portfolio. Just don't sell it for money.

 

[jwbryson1]

Well, seeing how you are not legitimately in business... I'd roll over for her.

What? Why is she not "legitimately" in business? How do you define "legitimately?"

you don't have a contract

Says who? On what basis did you reach the conclusion that they did not enter into a contract? Please don't tell me because nothing is "in writing." Please don't make that the basis of your argument.

You don't go into business without taking care of the government first and foremost. They'll end your business before it ever starts. Being a broke college student isn't an excuse. The sales tax ID is free, you charge the client your sales tax so there is nothing out of pocket. The local business certificate/license may run you $50 if it's REALLY expensive. $50 or having the IRS and sales tax breathing down your neck?

I won't speak to the issues of sales tax ID and the collection of sales taxes, etc, but I think you dramatically overstate the IRS issues here. Let's say she earned a few hundred dollars shooting images. She likely would not owe federal income taxes and may not even be required to file a federal income tax return.

 

[Kra_Ash]

I feel bad for you lol but it's really easy to get a tax ID and EMI. And if your client has not fully paid you ... You are still the owner of the picture unless you sell it to some one else . So technically she won't win in court if you use her picture for you portfolio. Just don't sell it for money.

Lol thanks. Yeah she already paid me for it all. I just owe her $6 for two prints I wasn't able to get for her. I wouldn't use her pictures for anything besides showing others what I can do. And when I start a portfolio, those would not be in it. They're devent, but not portfolio worthy.

I found this while looking up business license for photography businesses. Would this apply to me as well?

http://answers.yahoo.com/question/index?qid=20110126100228AAdUB2O

 

[Kra_Ash]

What? Why is she not "legitimately" in business? How do you define "legitimately?"

Says who? On what basis did you reach the conclusion that they did not enter into a contract? Please don't tell me because nothing is "in writing." Please don't make that the basis of your argument.

I won't speak to the issues of sales tax ID and the collection of sales taxes, etc, but I think you dramatically overstate the IRS issues here. Let's say she earned a few hundred dollars shooting images. She likely would not owe federal income taxes and may not even be required to file a federal income tax return.

I have documents saved of our conversations from when she first contacted me. It shows her agreeing to.my prices and understandig it. I've read about how its not the best but it still shows there has been an agreement about it.

 

[jwbryson1]

I'm an attorney and anybody who tells you "there is no contract unless you have something in writing" is not correct. Now, certain contracts are required to be in writing (sales of land, for example and others), but in this case, unless there is some statutory obligation to reduce an agreement to writing (highly unlikely), then you likely have a contract with her. The point is that legally enforceable oral contracts are entered into every single day.

I'd suggest that you threaten to sue her for breach of contract if she doesn't pay you what she's contracted to pay you for these images.

I don't have all the facts in front of me and I'm not giving you legal advice, but if it were me personally, that's what I would do.

 

[tirediron]

You have to have a signed model release from the persons in the images or their legal parent or guardian if you want to post anything on the internet-ANYWHERE-or you want to show those images in a portfolio of any sort. In short, having them posted to facebook is illegal also...

What??????????????? When did this change?

 

[jwbryson1]

You have to have a signed model release from the persons in the images or their legal parent or guardian if you want to post anything on the internet-ANYWHERE-or you want to show those images in a portfolio of any sort. In short, having them posted to facebook is illegal also...

What??????????????? When did this change?

Yeah, I've never heard this either.

 

[tirediron]

I'm an attorney and anybody who tells you "there is no contract unless you have something in writing" is not correct. Now, certain contracts are required to be in writing (sales of land, for example and others), but in this case, unless there is some statutory obligation to reduce an agreement to writing (highly unlikely), then you likely have a contract with her. The point is that legally enforceable oral contracts are entered into every single day.

I'd suggest that you threaten to sue her for breach of contract if she doesn't pay you what she's contracted to pay you for these images.

I don't have all the facts in front of me and I'm not giving you legal advice, but if it were me personally, that's what I would do.

In practical terms however, a verbal contract is generally worth exactly the same as the paper on which it is written.

 

[jwbryson1]

In practical terms however, a verbal contract is generally worth exactly the same as the paper on which it is written.

I don't even know what that means...nice bumper sticker though.

 

[memorishots]

It would apply to you in a small way only because you have not paid taxes on your profit but you can also claim a lost if your equipment cost more then you profit .. ( little tricks on owning a business. But what I don't fully understand is why you think she can sue you. If you have not sold her pictures to any company for advertisement. Also start the business ASaP it only coast like 187$ and you get a tax break when you buy equipment lol

 

[jwbryson1]

you have not paid taxes on your profit

Who says she has made a profit? Lots of assumptions in these posts. She may have revenues, but she also has expenses that she can deduct, including depreciation on her equipment which memoirshots alluded to in his post. She may be claimed on her parents' tax return as a college student (again, lots of assumptions in the responses to this thread). If she's not claimed by her parents, then if she claims herself her personal exemption would exceed her taxable income and again, she may not owe taxes.

Too many assumptions in these answers to give her really clear guidance on her issue.

I'm not even convinced she's "being sued" as she stated. Based on what I've read, she's in an argument with a client but there has been no lawsuit filed. What person would file a lawsuit where the damages are negligible? What a waste of time and energy.

 

[Kra_Ash]

I'm an attorney and anybody who tells you "there is no contract unless you have something in writing" is not correct. Now, certain contracts are required to be in writing (sales of land, for example and others), but in this case, unless there is some statutory obligation to reduce an agreement to writing (highly unlikely), then you likely have a contract with her. The point is that legally enforceable oral contracts are entered into every single day.

I'd suggest that you threaten to sue her for breach of contract if she doesn't pay you what she's contracted to pay you for these images.

I don't have all the facts in front of me and I'm not giving you legal advice, but if it were me personally, that's what I would do.

This helps just as much though. Thank you. I've been told I can also have her arrested or something if she goes to my parents house tomorrow or comes to my work for harassment? I don't even know why she really is coming to either place, she said if I'm not there she will call the police and file a charge against me?
Guh, I don't know! Haha